Pool? What You Should Consider

  Things to Consider Before Buying an Investment Property with a Pool

Buying a house with a swimming pool can be thrilling because it has various benefits. Sunbathing at the poolside, tasty summer BBQs, and family gatherings are things you can do at the pool. But, it is also important for you to consider the following 3 factors when buying a home with a swimming pool. 

 

Cost Implications

Maintaining your swimming has some cost implications. You need to think about them before making your final decision on your investment. That is because pool maintenance is a must if you enjoy swimming in the pool. Also, proper pool maintenance increases its longevity and avoids costly repairs. But it also increases your pool expenditure when you replace filters, and vacuum clean the pool, and much more. 

 

Pool Condition

Looking at the surface alone will not help you know your swimming pool's condition. Before investing in the house, it is paramount to inspect the pool to know its true condition. For that reason, it will help you if you work with a certified pool inspector with a home inspection expert.

 

Value of the House

Both renters and buyers like houses with swimming pools because of their benefits. But a swimming pool also increases the property's value, and you need to consider it when buying a house. For that reason, you have to factor in the raised cost before making your final decision.

 

However, it is possible to get some funding when buying a home if you cannot afford to buy it in cash. 

Fixer Upper Deal Breakers

 3 Deal Breakers When Considering a Fixer-Upper

Buying a house that isn't move-in-ready to renovate can have various advantages. You can get an affordable property requiring little work before flipping or renting it. You may use your construction skills to fix this building, which can be more helpful than finding a complete one or building from scratch. However, some signs show buying an old house needing repair isn't worth it. These deal-breakers can save your resources and prevent the stress of getting a home needing too much work.

1. Mechanical Problems

You can spend substantial sums when upgrading the electrical setup or replacing the furnace or air conditioner. If electricians didn't build the property's electrical box to support the volts or amps needed or used ancient knob and tube wiring, the issues could cause fires. Fixing them with all the outlets, boxes, and wires can cost over $10,000. Aluminum wiring can also expand and contract, loosening connections and causing fires. Buried oil tanks that funnel propane into the property may also leak or cost over $10,000 to remove.

2. Environmental Problems

Look for problems inside the house like mold, asbestos, wood rot, lead pipes, lead paint, or mushrooms growing on the floor and ceiling. You may also consider whether the property sits in a flood plain, is at the bottom of a hill, or is close to huge trees. Trees near the house can fall onto the roof, and creeping roots can clog the sewer line. You may also consider if high radon levels can seep inside the basement via crevices and cracks. According to the EPA, mitigation may be necessary if radon levels exceed four picocuries per liter (pRi/L). This process can cost $800–$2,000. You may also avoid a fixer-upper if it has pests like termites and carpenter ants. Critters living in the crawl space, attic, or inside walls can damage the property's HVAC system, electrical wiring, and ductwork.

3. Structural Problems

If the foundation cracks, falls apart, or crumbles, the house may not be far behind. Depending on the property's size and damage extent, you can spend $30,000 or more to fix foundational issues. Major additions, repairs, and remodeling without the relevant permits can also pose several difficult issues. Insurers can avoid covering such properties, exposing you to considerable losses.

 

Home Upgrades - What You Need to Know

 5 Things You Must Know Before Upgrading Your Home

If you're like most people, you probably want to focus on flipping or upgrading houses that are in move-in-ready condition. However, sometimes it can be challenging to find a property that meets all of your criteria. It is especially true if you're looking for rental property investment. That's why we've put together this list of deal-breakers that indicate the property is potentially a risk to get involved with. Stay safe and stick to properties that don't have these problems.

1. Poorly Performing Comparable

When looking at comps to determine the value of a property, make sure that they're all from similar neighborhoods and have been sold in the last six months. If there are any outliers in terms of the sale price or date, remove them from your analysis.

2. Extreme Foundation Damage

Extreme foundation damage to slab foundation properties can be very costly to fix, especially if the damage is severe. If you're inexperienced in this area, it's best to stay away from properties with this type of foundation.

3. Mold or Asbestos

These are health hazards that can be expensive to remediate. If you're unsure how to test for mold or asbestos, hiring a professional is best.

4. Electrical Problems

Faulty wiring can be a severe fire hazard. If you're not comfortable fixing electrical issues, it's best to stay away from houses with this issue.

5. Plumbing Problems

Leaky pipes can cause extensive water damage, so it's essential to fix them as soon as possible. If you're inexperienced in this area, hiring a professional is best.

Here Is What to Do Next

There you have it, a list of deal-breakers to watch out for when flipping or upgrading old houses. Keep these in mind, and you'll be sure to avoid any properties that are too much of a risk. Stay safe.

Reducing Property Holdings

 4 Ways to Reduce Your Rental Property Holdings In 2022

It's been a great run, but now it might be time to think about reducing your rental property holdings. Why? Changing mortgage interest rates and low inventory for houses make it increasingly difficult to sell properties at a price that will cover your costs. If you're nearing retirement or would like to focus on other income streams, read on for some tips on how to make the transition as smooth as possible.

1. Evaluate Your Holdings and Make a Plan

The first step is to inventory all of your rental properties and assess how much work they currently require. If you have a lot of properties that are in bad shape or require a lot of ongoing maintenance, it might be more challenging to sell them off. In this case, you might want to consider selling off a few properties at a time to ease the transition.

2. Get Your Finances in Order

Make sure you have a solid financial plan in place before you start selling off your rental properties. Have an idea of how much money you'll need to cover any costs associated with the sale (for example, real estate agent fee and closing costs) and how you'll replace the income from your rental properties.

3. Prepare Your Properties for Sale

If you're planning to sell your properties, you'll need to ensure they're in good condition. It means repairing any damage, repainting, and cleaning up any messes. You might also want to consider staging your properties to make them more appealing to buyers.

4. Find a Real Estate Agent

When it comes time to sell your properties, you'll need an excellent real estate agent to help you. Make sure you interview several agents. Again, find someone who has a lot of experience selling rental properties.

Here Is What to Do Next

Reducing your rental property holdings can be a complex process, but you can make it as smooth as possible if you plan and take the necessary steps. By evaluating your holdings, getting your finances in order, and preparing your properties for sale, you'll be well on your way to selling off your rentals.